Economy General Knowledge Quiz Set 1

1. Deficit financing increases—

(A) Rate of money inflation
(B) Rate of money deflation
(C) Rate of devaluation
(D) All of the above

The correct option is -  (A) Rate of money inflation

2. Which is not a monetary measure to control inflation ?

(A) Soft loan policy
(B) Hard credit policy
(C) Tight the regulation of money issue
(D) To reduce the quantity of money

The correct option is - (A) Soft loan policy 

3. Which is the monetary measure to control inflation ?

(A) Increase in taxation
(B) Decrease in taxation
(C) Soft credit policy
(D) Hard credit policy

The correct option is - (D) Hard credit policy 

4. Selling of securities in the open market by the central bank creates—

(A) Inflation
(B) Deflation
(C) Both of above
(D) None of the above

The correct option is - (B) Deflation 

5. To control inflation the central bank should do—

(A) To sell government securities and to decrease bank rate
(B) To sell government securities and to increase bank rate
(C) To purchase government securities and to increase bank rate
(D) To purchase government securities and to decrease bank rate

The correct option is - (B) To sell government securities and to increase bank rate 

6. To buy a book, from the market by giving money is called—

(A) Direct Exchange
(B) Indirect Exchange
(C) Direct and Indirect exchange
(D) This is not any type of exchange

The correct option is - (A) Direct Exchange 

7. Which of the following is not a direct tax ?

(A) Income tax
(B) Property tax
(C) Sales tax
(D) House tax

The correct option is - (C) Sales tax 

8. Ultimate burden of tax is known as—

(A) Impact
(B) Incidence
(C) Shifting of tax
(D) None of the above

The correct option is - (B) Incidence 

9. When elasticity of demand and elasticity of supply are equal, the burden of tax ?

(A) Lies more on buyer
(B) Lies more on seller
(C) Lies equally on buyer and seller
(D) All of the above are false

The correct option is - (C) Lies equally on buyer and seller 

10. Which of the following economists suggested tax on expenditure ?

(A) Dalton
(B) Musgrave
(C) Kaldor
(D) Van Philips

The correct option is - (A) Dalton